Congress and the Obama administration are about to take up one of the most fundamental issues stemming from the near collapse of the financial system last year — how to deal with institutions that are so big that the government has no choice but to rescue them when they get in trouble.
A senior administration official said on Sunday that after extensive consultations with Treasury Department officials, Representative Barney Frank, the chairman of the House Financial Services Committee, would introduce legislation as early as this week. The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution.
“…that the government has no choice but to rescue them when they get in trouble”
Has no choice?!? That’s bullshit on stilts. Whatever happened to letting the free market dictate success and failure, instead of using trillions in taxpayer funds to bailout businesses? Oh that’s right, we’re saddled with a socialist nutcase who thinks “wealth redistribution” and government takeovers are a good thing.
Not only that, but when a government gives itself the power to “throw out management, wipe out the shareholders and change the terms of existing loans held by the institution”, that is a big step towards a communist state.
—a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state.
—a system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party.
Obama is hellbent on transforming America into a Banana Republic.